Question 1

Andy contracts with Yvonne to produce an advertisement for a Fourth-of-July fundraising party.Yvonne does not produce the advertisement until July 6.Here,Yvonne's breach of the contract is not a material breach unless the contract explicitly stated that time is of the essence.

Accepted Answer

In some contracts that do not specifically state the time for performance,the time can be inferred from the circumstances surrounding the contract.In this case,it is a 4th of July celebration and the court would consider this a material breach of contract by Yvonne.

Question 2

When a promisor's performance is an express condition of the promisee's duty to perform,that performance must meet a strict performance standard.

Accepted Answer

When a party's duty is subject to an express condition,that condition must be strictly and completely complied with to give rise to a duty of performance.

Question 3

A condition subsequent cannot be a valid reason for the discharge of a duty.

Accepted Answer

A condition subsequent is a future,uncertain event that discharges the duty to perform.When a duty is subject to a condition subsequent,the duty to perform arises but is discharged if the future,uncertain event occurs.

Question 4

Bill contracts to build a building for Harvey.A few changes in the building code that were made after the contract was signed will increase Bill's costs in performing his duties.He is excused from performance under the contract.

Accepted Answer

This does not constitute a case of excuse from nonperformance because the performance of the duty is not impossible.It can be performed simply by increasing the costs involved.

Question 5

In general,an employee who has been fired and who wants to sue for breach of contract need not do anything to limit or mitigate his damages,such as looking for another job.This would unfairly benefit an employer who has wrongfully breached a contract.

Accepted Answer

An employee who has been wrongfully fired would be entitled to damages equal to his wages for the remainder of the employment period.The employee,however,has the duty to minimize the damages by making reasonable efforts to seek a similar job elsewhere.

Question 6

There cannot be subjective standards of personal taste and comfort when determining a promisee's performance.

Accepted Answer

Contracts sometimes provide that a promisor's duty to perform is conditioned on his personal satisfaction with the promisee's performance.In determining which standard of satisfaction to apply,courts distinguish between cases in which the performance bargained for involves personal taste and comfort and cases that involve mechanical fitness or suitability for a particular purpose.A promisor who is honestly dissatisfied with the promisee's performance has the right to reject the performance without being liable to the promisee.

Question 7

An accountant who substantially performs her duties to her client triggers the client's duty to pay the contract price,less any damages resulting from defects in her performance.

Accepted Answer

When a substantial performance standard is applied,the promisor who has substantially performed is discharged.His substantial performance triggers the other party's duty to pay the contract price less any damages resulting from the defects in his performance.

Question 8

Specific performance is almost never awarded in contracts for the sale of land.

Accepted Answer

Contracts for the sale of real estate are the most common subjects of specific performance decrees because every tract of real estate is presumed to be unique.

Question 9

Mr.Green contracts to repair his roof with Mr.Brown.Prior to the work starting a tornado destroys Mr.Green's home.Mr.Brown fails to perform under the contract,but the court will not consider Mr.Brown to be in breach due to impossibility.

Accepted Answer

When performance of a contractual duty becomes impossible after the formation of the contract,the duty will be discharged on grounds of impossibility.

Question 10

If Grant promises to sell his regular season football tickets to Carson on condition that Indiana University wins the Rose Bowl,Indiana's winning the Rose Bowl is an express condition of Grant's duty to sell the tickets.

Accepted Answer

An express condition is a condition that is specified in the language of the parties' contract.When a duty is subject to an express condition,that condition must be strictly complied with in order to give rise to the duty to perform.

Question 11

In the eyes of law, all breaches of contract are of equal seriousness.

Accepted Answer

The seriousness accorded to any kind of breach of contract depends on the extent of the breach.Some are relatively minor deviations,whereas others are so extreme that they deprive the promisee of the essence of what he bargained for.

Question 12

In a contract for Adam to sell Carrie a steam boiler,Carrie's obligation to pay is conditioned upon her personal satisfaction with the boiler.Even though the boiler meets every mechanical test imaginable,Carrie refuses to pay because she just does not like the boiler for some reason.She is not obligated to pay,because the contract said that he must be personally satisfied,and a contract is a contract.

Accepted Answer

In a case like this,performance involves mechanical fitness or suitability;the court will apply a reasonable person test.Since a reasonable person would be satisfied with the boiler,Carrie is obligated to pay.

Question 13

Arthur and Brian have entered into a contract with an enforceable liquidated damages provision that states that Ben's recovery will be $10,000 in the event of Arthur's breach.Arthur breaches the contract.Ben loses $50,000 in consequential damages as a result.Ben's recovery is limited to $10,000.

Accepted Answer

When liquidated damages provisions are enforced,the amount of damages agreed on will be the injured party's exclusive damage remedy.Here,the liquidated damages provision makes it possible for Ben to recover only the $10,000 as stated.

Question 14

There is prescribed formal language that must be used to create an express condition as part of a contract.

Accepted Answer

Although no particular language is required to create an express condition,the conditional nature of promises is usually indicated by such words as provided that,subject to,on condition that,if,when,while,after,and as soon as.

Question 15

If there is no time specified in contract by the parties,then it is presumed that performance shall be completed whenever possible.

Accepted Answer

When no time for performance is stated or implied,performance must be completed within a "reasonable time," as judged by the circumstances of each case.

Question 16

The substantial performance standard is more lenient than the strict performance standard of judicial contract legal interpretation.

Accepted Answer

The strict performance standard of contract law requires virtually perfect compliance with contractual terms,while substantial performance is a somewhat lower standard of performance.

Question 17

When a person owes an unconditional duty to another,then he/she must perform it unless the performance is excused.

Accepted Answer

In the performance stage of a contract,when a party's duty is unconditional,he has the duty to perform unless his performance is excused.

Question 18

Ms.White is contracted by Mr.Green to make her "world famous" apple pies.Ms.White has an accident,falls into a coma and the pies are not delivered to Mr.Green by the time stated in the contract.Ms.White will be considered in breach of her contract to Mr.Green.

Accepted Answer

Incapacitating illness or death of the promisor excuses nonperformance when the promisor has contracted to perform personal services.

Question 19

The term condition means an event that may affect a party's duty to perform under a contract.

Accepted Answer

A condition is an uncertain,future event that affects a party's duty to perform.

Question 20

Pat promises to install granite countertops in the home at 123 Main Street that Bruce is purchasing "provided that the escrow on the sale of 123 Main Street closes." The close of escrow on the sale of 123 Main Street is a condition precedent to Pat's promise.

Accepted Answer

When a promisor's duty is conditional,his duty to perform is affected by the occurrence of the condition.

Quiz 18: Performance and Remedies